$15,500.00 (plus an additional $5,000.00 if age 50 or
older at the end of 2008) for 401(k) and 403(b) plans

$15,500.00 (plus an additional $5,000.00 if age 50 or older at the end of 2008)
for 457 plans (Deferred Compensation for state and local government employees)

$10,500.00 (plus an additional $2,500.00 if age 50 or older at the end of 2008)
for SIMPLE plans

$46,000.00 for Defined Contribution KEOGH plans

$46,000.00 for Self-Employed SEP plans (allowable contribution equal to 25%
of net earnings up to $230,000, which translates to 20% multiplied by the total of "net earnings from self-employment" from
Schedule C, Schedule C-EZ or Form K-1 less the deduction for 50% of self-employment tax)

$5,000.00 (plus an additional $1,000.00 if age 50 or older at the end of 2008) for
traditional or ROTH Individual Retirement Accounts (IRA)

The compensation limit for participation in a SEP is $500.00.

--------------------

The
limits for qualified transportation fringe benefits are:

$220
per month for qualified parking

$115
per month for transit passes and transportation in a commuter highway vehicle

--------------

The phase-out ranges for the exclusion of EE and I Bond interest when the bond proceeds
are used for qualifying education expenses are:

AGI of $67,100.00 - $ 82,100.00 for Single and Head of Household

AGI of $100,650.00 - $130,650.00 for Married Filing Joint Return

Taxpayers filing Married Filing Separate Return are not eligible for the exclusion.

--------------------

The earnings base for Social Security withholding on wages
and the Social Security portion of self-employment tax is $102,000.00.

The maximum amount of Social Security tax to be withheld from wages is $6,324.00.
The maximum Social Security portion of self-employment tax is $12,648.00.

The income base used to determine the above premiums is AGI plus tax-exempt interest.

The earnings limitations are:

1) Under Full Retirement Age - $13,560.00 per year or $1,130.00 per month ($1.00 in
benefits lost for every $2.00 in earnings above the limit).

2) The Year You Reach Full Retirement Age - $36,120.00 per year or $3,010.00 per month
(applies only to earnings for months prior to reaching full retirement age - no limit on earnings beginning the month you
reach full retirement age; $1.00 in benefits lost for every $3.00 in earnings above the limit).

There is no limit on earnings beginning the month an individual reaches full retirement
age.

--------------------

Wages paid to a household employee – an individual providing domestic service in the
employer’s private home - will not be subject to FICA tax if they total less than $1,600.00 for the year.

--------------------

A day care provider located in the continental US can deduct, in lieu of actual expeneses,
the following standard meal allowances:

$ 1.11 per child for breakfast

$ 2.06 per child for lunch or dinner

$ .61 per child for snacks

Different per diems apply to Alaska and Hawaii.

These rates include beverages, but not non-food supplies such as container, paper
products or utensils.

The provider can elect to use either the actual expenses or the per diem amounts indicated
above, but must use the selected method for the entire tax year.

A log must be kept indicating the number of meals and snacks served to each
child.

--------------------

The phase-out ranges for deducting student loan interest are:

AGI of $55,000 to $70,000.00 for Single, Head of Household and Qualifying Widow(er)

AGI of $115,000.00 to $145,000.00 for Married Filing Joint Return

---------------------

The phase-out ranges for an IRA deduction by an active participant in an employer plan are:

Modified AGI of $53,000 to $63,000 for Single or Head of Household

Modified AGI of $85,000 to $105,000 for Married Filing Joint

Modified AGI of $0 to $10,000 for Married Filing Separate

---------------------

Contribution limits for a Health Savings Account is the
lesser of the annual deductible or $2,900.00
for individual coverage or $5,800 for family coverage.

A "high deductible plan" is one that has a deductible of
at least $1,100.00, with a maximum "out of pocket" of $5,600.00, for individual coverage, and at least $2,200.00, with
a maximum "out of pocket" of $11,200.00, for family coverage.

--------------------

For purposes of qualifying for an Archer Medical Savings Account, a "high deductible
plan" is one that has a deductible of between $1,950.00 and $2,900.00, with a maximum "out-of-pocket" of $3,850.00, for individual
coverage, and between $3,850.00 and $5,800.00, with a maximum "out-of-pocket" of $7,050.00, for family coverage.

--------------------

Long-term care insurance premiums, based on a taxpayer's age, are:

Age 40 or less = $310.00

Age 41 - 50 = $ 580.00

Age 51 - 60 = $1,150.00

Age 61 - 70 = $3,080.00

Age 70 or older = $ 3,850.00

The deduction for long-term care services is limited to
$270 per day.

--------------------

The maximum Section 179 deduction for first-year expensing
of business equipment is $128,000.00.

The dollar-for-dollar phase-out of Section 179 expensing begins when a taxpayer places
more than $510,000.00 of qualifying assets in service during the year.

--------------------

If the total Child Tax Credit exceeds the amount of tax
liability, the excess credit is refundable to the extent the smaller of -

The amount of the Child Tax Credit remaining after reducing
regular tax or AMT to "0", or

15% of the taxpayer's earned income in excess of $8,500.00.

------------------

The HOPE education credit is 100% of the first $1,200.00 of qualified tuition and
fees and 50% of the next $1,200.00, for a maximum of $1,800.00

----------------

The phase-out ranges for the Hope and Lifetime Learning
Credits are:

AGI of $48,000.00 to $58,000.00 for Single, Head of Household,
Qualifying Widow(er)

The maximum amount of the adoption credit and the maximum
amount of employer-provided adoption assistance benefits that are excluded from taxable income is $11,650.00 per eligible
child. The credit is phased-out as AGI goes from $174,730.00 to $214,730.00.

--------------------

In order to be eligible to claim the Earned Income Credit (EIC), investment income
cannot exceed $2,950.00.

--------------------

The phase-out ranges for the ability to contribute to a ROTH IRA are:

Modifed AGI of $101,000.00 to $116,000.00 for Single and Head of household, and

Modified AGI of $159,000.00 to $169,000.00 for Married Filing Joint and Qualifying
Widow(er)

Modifed AGI of $0.00 to $10,000.00 for Married Filing Separate

--------------------

Taxpayers may roll over distributions from a qualified retirement plan such as a
401(k), a 403(b) or a governmental 457 directly into a ROTH IRA.

--------------------

The "kiddie tax" rules apply to dependent children under age 19, or under age 24 if
a full-time student.